The new month has kicked in and from July 1, there will be a host of financial changes in financial matters. These will affect the pocket of the common man and how he or she does financial planning. It must be also noted in this regard that July 1 marks the beginning of the second quarter of the financial year as well, which means some changes in tax rules will also be applicable from today. From PAN-Aadhaar linking, income tax rule changes, to TDS on cryptocurrencies and LPG cylinder price drophere are some of the money rule changes from July 1.
Here are Five Key Financial Rule Changes from July 1, 2022:
1. PAN-Aadhaar Linking Fine Increases
From today, you have to pay double penalty if you are attempting to link your PAN-Aadhaar. As per the CBDT guidelines, those who will link their PAN Aadhaar from July 1 till March 31 next year, they will have to pay a fine of Rs 1,000 as opposed to Rs 500 fine that was being imposed till June 30.
2. Credit Card Rules Change
From July 1, rules relating to issuance, closure and billing of credit cards have been changed. Under this, credit card companies cannot send unwanted credit cards to customers. Apart from this, your credit card billing cycle can be chosen by you on a one-time basis. If the credit card is not closed per request of the customer within seven working days, the company will be liable to pay Rs 500 daily to the customer till the time it is closed.
3. Income Tax Rule Change for Doctors, Influencers
Doctors, influencers and other such people who receive free items from companies will have to pay taxes for receiving them from July 1, the Income Tax department has declared. Finance Act 2022 inserted a new section 194R in the Income-tax Act, 1961, as per which, those who receive benefits will have to pay TDS at the rate of 10 per cent.
4. TDS on Cryptocurrencies
Those who invest in cryptocurrencies will have to pay income tax deduction at source (TDS) from July 1, Friday. As per a circular issued by the CBDT on June 22, “The new section (Section 194S) mandates a person, who is responsible for paying to any resident any sum by way of consideration for transfer of a virtual digital asset (VDA), to deduct an amount equal to 1 per cent of such sum as income tax thereon.”
5. LPG Cylinder Price Cut
The price of 19-kg commercial LPG cylinder has been cut by Rs 198 in Delhi with effect from Friday, July 1, state-owned retailers said in a notification. In Kolkata, LPG price has been slashed by 182 in Kolkata, s 190.50 in Mumbai and Rs 187 in Chennai. However, the price of a 14.2-kg domestic cooking cylinder has remained unchanged.
6. Demat Account Deactivation
The deadline to carry out your KYC for demat account was June 30, following which the account will be deactivated. You have to update your KYC with details like name, address, PAN, valid mobile number, income range and valid email ID. If this is not done, from July 1 your demat account will be rendered invalid.
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